Receive a Loan
Our Process
We have a simple and straightforward process to provide you with a personal loan on your producing mineral or royalty interest. There is no credit check and we will not foreclose on your mineral interest.
| Doc Review | To get started, we will need copies of any applicable oil and gas leases, any division orders, and the last three monthly revenue statements and check stubs. |
| Evaluation | Upon receipt, we will evaluate your eligibility for a loan based on the documents provided and our independent analysis. Once completed, we will provide a summary of the loan terms we can provide. |
| Approve | Once you approve the loan terms, we will send all loan closing documents for you to execute and return. |
| Funding | As soon as all executed closing documents are returned, we will immediately fund the loan. |
Quick and Easy Personal Loans on Producing Mineral Rights
- No credit checks
- No pre-payment penalty
- No foreclosure
- Loans from $5,000-$250,000
- Available in most states, please inquire
As mineral rights owners ourselves, we know and understand the value of oil and gas. Unlike your local bank, we recognize the value of your producing royalty interest and, for those mineral owners not ready yet to sell, we are willing to give you a personal loan for your mineral interest. Your loan will be secured by your future royalty payments. We don’t check your credit or foreclosure on your interest if you default.
We appraise your producing royalty interest and will loan up to 60% of its value. As a general rule of thumb, we can often loan up to 36 times the average monthly revenue from your producing property. Our loans typically last three years, instead of the customary two years offered by our competitors.
How Is the Loan Repaid?
At closing, you will execute a promissory note, a deed of trust, and a letter that serves as a division order transfer and we will fund the loan by cashier’s check or wire transfer. During the term of the loan, monthly royalty checks will be paid directly to the trustee, who will apply the proceeds against principal and interest on the loan balance. When the loan is repaid, the trustee will execute a reconveyance of the deed of trust and a letter that cancels the division order transfer and you should begin receiving your full share of royalties soon thereafter.
Why Receive a Loan from Us Instead of a Bank?
We understand and recognize the value of oil and gas properties and will fund loans strictly on the value of your royalty interest. We do not run credit checks and never asks for tax returns. You will never be denied a loan based on negative credit history and your credit score will not be affected by getting a loan. We do not obtain expensive reserve reports, allowing us to require extremely low origination fees (which are deducted from loan proceeds.
Frequently Asked Questions
Why should I borrow against my royalties instead of selling them outright?
If you sell your royalty, it is gone forever. If you borrow against it, you will still own it and can sell it in the future if necessary. The royalties will remain in your family for the future when more wells are drilled or oil and natural gas prices improve. There will be no hit on your credit like a conventional loan. And receiving a loan instead of selling your interest may offer significant income tax advantages. If there is a business purpose for the loan (for example, to buy equipment or retire debt), the interest expense may be deductible. In addition, even though the royalty payments are received by the trustee, you may still be able to claim the depletion deduction for produced royalties.
Why should I use Max Royalty?
Because we treat this as a personal loan, it does not affect your credit and you cannot lose your interest by foreclosure. We carefully analyze your interest to understand the maximum amount we can loan and still recoup the principal and interest from your current royalty stream. Other lenders may loan too much or not keep enough royalty to repay the loan either causing them to foreclose on your interest or forever retain possession of your interest. We have no prepayment penalties so you can pay off the loan and begin receiving your royalty interest again anytime.
In what states do you make loans?
We have loans secured by royalties in Arkansas, Kansas, Louisiana, Oklahoma, Pennsylvania, Montana, North Dakota, Texas and Wyoming – adding more states on a continuing basis.
What do I have to do to qualify?
There are no personal financial requirements. Your ability to receive a loan is entirely based on the value of your mineral rights and their ability to repay the loan.
How is my FICO score affected by a royalty loan?
No credit report is requested to evaluate a loan application – so your FICO score is unaffected. We do not report to credit reporting agencies, so the outstanding loan balance and monthly payment should not adversely affect your credit score. Some borrowers actually improve their credit score by using their loan proceeds to pay-down their credit card balances.
How quickly will I receive the money?
We strive to fund within 3-5 business days of receiving the required information to evaluate your loan request.
How much money can you loan me?
Generally, we will loan from 12-36 times your average monthly net royalty. The amount may be less, if your royalties are from shale wells in their first year of production. The amount may be more if your property includes wells that are being drilled but are not yet producing.
What is the loan length?
Our loans last until the principal and interest is paid in full, which is typically three years.
What are the interest rate and fees?
There are no application fees or other pre-funding costs. Because we use investor capital for the loans, our interest rate is 18%. We also charge a 3% loan origination fee at the time of funding, which you do not have to pay out of pocket because it is payable out of the loan proceeds. The origination fee is used to cover our out-of-pocket fees to evaluate the mineral interest and confirm your title to it. We cover all document delivery and recording feeds and any wire transfer fees.
What about my Ad Valorem taxes, who will pay those?
There are no application fees or other pre-funding costs. Because we use investor capital for the loans, our interest rate is 18%. We also charge a 3% loan origination fee at the time of funding, which you do not have to pay out of pocket because it is payable out of the loan proceeds. The origination fee is used to cover our out-of-pocket fees to evaluate the mineral interest and confirm your title to it. We cover all document delivery and recording feeds and any wire transfer fees.
What if I want to pay my loan off early?
There is never a pre-payment penalty. Repayment is necessarily flexible, as royalties can vary significantly month-to-month. Consequently, our promissory note contains no late payment penalty or penalty for a missed or short payment.
What do I need to provide you with?
Initially, we require all applicable oil and gas leases, any division orders, and the last three monthly revenue statements and check stubs. During our evaluation, if we discover we need any additional documents (such as probate documents, correspondence with the royalty payors, etc.), we will notify you and request those documents.
How is the money transferred to me?
We typically deliver all loan proceeds electronically by wire transfer. If this does not work for you, we will do our best to make other practical arrangements.
